Sewer department cites revenue dip from distilleries, details $26 million expansion planning and tariff‑related delays

Scott Fleming, the city’s sewer/wastewater presenter, told council the sewer department’s draft budget shows a revenue reduction tied to a downturn in the local bourbon/distilling industry and that the utility is tightening operating costs while preserving service.

“We’ve tightened our belts a little bit here on this budget, and we can still provide all the services we need to with the reduced budget,” Fleming said, citing lower distillery payments as a contributor to revenue decline.

The nut graf: Fleming described a proposed plant expansion that would add a secondary treatment process and incorporate a PAA (peracetic acid) dosing system to improve disinfection during flood events; the total project estimate cited in the meeting was about $26,000,000. Fleming told council the city has grant money, low‑interest KIA loans and other funding sources available but that federal tariffs and equipment lead times (some machinery sourced from Germany) have slowed procurement and project timing.

Sewer staff also noted the utility will implement an annual CPI adjustment in rates (cited in the meeting as 3.1%) and that certain capital debt and grant packages are already identified to fund the expansion. Fleming said the department is refining project timing to avoid large contingency impacts from equipment price swings caused by tariffs.

Councilors asked for breakdowns of total capital expenses; Fleming said more detailed line‑item capital breakdowns and supporting documentation will be provided in the budget packet.